“The success story of Amul & how it managed 1.

5x demand for milk even in

lockdown?”

Submitted by: Somya Srivastava

Contact No.: 8359933998
Email - somya.srivastava@hotmail.com
College Name: Welingkar Institue, Mumabi
PGDM Healthcare BATCH: 2019-21
1. Introduction to Amul and Indian Dairy Market
Amul is an Indian dairy society based at Anand in the domain of Gujarat.
"Amul" is derived from the Sanskrit word 'Amulya' which signifies ‘priceless’ or
precious’. Set up in 1946, Amul is a cooperative brand supervised by a
cooperative body, the Gujarat Cooperative Milk Marketing Federation Ltd.
(GCMMF), which today is together constrained by 3.6 million milk creators in
Gujarat.

Fig 1: Major producers of cow milk worldwide in 2019, by country (in million metric tons)

Amul began India's White Revolution, which made India the world's greatest
producer of milk and milk items. Amul was started by Tribhuvandas Patel
under the direction of the First Deputy Prime Minister of India, Sardar
Vallabhbhai Patel. Consequently, Kaira District Milk Union Limited was
concieved in 1946. Tribhuvandas headed the alliance until his going during the
70s. He had made sure about Dr. Verghese Kurien in 1949 and persuaded Dr.
Kurien to remain and help with the mission.
2. History of Amul and White Revolution
2.1 Kaira District Co-operative Milk Producers’ Union Limited:
The amul revolution started around farmers to make them aware. it grew and
matured into a protest movement that was channel towards economy
prosperity. By the end of 1948 more than 400 farmers join in more village
society and the quantity of milk handled by a one Union increased from 2,50 to
5000 litres a day.

In the interim Dr varghese Kurien tired being at the administration creamery in

Anand which held no test, elected to help Shri Tribhovandas Patel, the
executive of KDCMPUL. This denoted the introduction of amul in 1946. The
achievement of Amul was instrumental in dispatching the White Revolution
that brought about expanded milk creation in India. It is formally named as
Operation Flood by Amul. The advancement innovation of shower drying and
preparing wild ox milk, created by Mr. H.M. Dalaya, was one of the key factors
that added to the Revolution.

2.2 Setting Up of Gujarat Cooperative Milk Marketing Federation:

In 1954, Kaira District Co-usable Milk Producers' Union fabricated a plant to

change over excess milk delivered in the virus seasons into milk powder and
margarine. In 1958, a plant to fabricate cheddar and one to create child food
were included. Resulting years saw the expansion of more plants to create
various items. In 1973, the milk social orders/locale level associations chose to
set up an advertising organization to showcase their items. This organization
was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was
enrolled as a co-usable society on 9 July 1973.

Gujarat Cooperative Milk Marketing Federation (GCMMF) follows a three-level

structure at town, local and state level for obtaining, handling and promoting
milk and milk items. The area units likewise give specialized back-halting to the
milk makers and a scope of administrations, for example, feed, veterinary
consideration, planned impregnation, instruction and preparing.
2.3 GCMMF Today:

GCMMF is India's biggest food items showcasing association. It is a state level

peak assemblage of milk cooperatives in Gujarat, which plans to give profitable
re-visitations of the ranchers and furthermore serve the enthusiasm of
shoppers by giving quality items, which are acceptable incentive for cash.
GCMMF advertises and deals with the Amul brand. From mid-1990's Amul has
entered territories not related straightforwardly to its center business. Its
entrance into frozen yogurt was viewed as effective and Pizza business, where
the base and the plans were made accessible to eatery proprietors at lower
rates.
In September 2007, Amul developed as the main Asian brand as indicated by a
study by Synovate to discover Asia's best 1000 Brands.

3. Business Model of Amul

Amul pursued a one of a kind plans of action, which planned for giving 'esteem
for cash' items to its purchasers while securing the premiums of the milk-
creating farmers who were its providers just as its proprietors. As milk was a
transient thing, the farmer persevered through a mishap if it was not sold
before the aspect of the deal.

Fig 2: Business Model of Amul

4. Structure of the Organization

The cooperative model utilized by Amul came to be known as the "Anand plan"
cooperative structure. It was a three-level structure that included town social
requests, locale level dairy affiliations, and a state-level association. Each level
was monetarily liberated from the others and included operators chose from
the level beneath it.

Arranged in the town of Anand, the Kaira District Milk Cooperative Union
(Amul) broadened exponentially. Its clasped hands with other milk
cooperatives in Gujarat which currently covers 2.12 million ranchers, 10,411
town's milk. It centers around fourteen territory level plants (relationship)
under the overall oversight of GCMMF.

Since the start, there was a supposition that this movement would legitimately
benefit and change helpless farmers and add to the improvement of society.
Markets, by then and even today, are unrefined and poor in the establishment.
Amul and GCMMF perceived that improvement and advancement couldn't be
left to advertise powers and that proactive mediation was required.

Two key necessities were recognized. The primary that proceeded with
advancement for the long stretch would depend after organizing free market
movement. It would require a staggering enthusiasm for the simultaneous
headway of suppliers and clients. Second, that amazing organization of the
framework and business possibility would require capable directors and
technocrats.
5. The Umbrella Brand

Fig 3: Use of single brand name for several products

The framework seeks after an umbrella checking method. Amul is the essential
brand for most thing characterizations made by various affiliations: liquid milk,
milk powders, margarine, ghee, cheddar, cocoa things, treats, solidified yogurt,
and merged milk. Amul's sub-brands join varieties, for instance, Amulspray,
Amulspree, Amulya, and Nutramul.
6. Development of Products

Amul's thing improvement was driven both by the spirit of the cooperative
structure and efficiency. Being a farmers' helpful, Amul was centered around
buying all the milk offered. The transient thought of milk made it essential for
Amul to handle the excess milk and enter new thing arrangements as age
extended.

6.1 Margarine and Butter

Fig 4: Amul Butter

Moved in 1955, margarine was one of the fundamental milk things offered by
Amul. It was furthermore the initial run through Amul successfully tried the
authority of a developed brand. Amul's most dependable opponent, Polson
had been forcing a plan of action milk supplier to the Bombay Milk Scheme.
Amul evacuated Polson to ascend as the undisputed pioneer in the margarine
promotion.
6.2 Cheese and cheddar

Fig 5: Amul Cheese

GCMMF moved took care of cheddar in 1959 sought after by cheddar powder
during the 1970s. During the 1980s the reputation of cheddar extended.

6.3 Milk and UHT Milk

Amul was the market boss in the Gujarat whole milk grandstand with a 90% bit
of the pie in 2002. Aside from giving milk to parts of Maharashtra and
Rajasthan.
7. Key Factors to Amul's Success

7.1 The Amul Girl (The Amul Advertising Campaign)

Fig 6: Mascot of Amul Brand

In 1966, Amul employed the overseeing head of the advertising agency,

Sylvester da Cunha to plan an advertisement crusade for Amul Butter.
DaCunha planned a mission as a progression of hoardings with effective
advertisements, identifying with everyday issues. It was mainstream and
earned a Guinness World Record for the longest-running advertisement
crusade on the planet.

During the 1980s, animation craftsman Kumar Morey and scriptwriter Bharat
Dabholkar were roped in for portraying the Amul promotions. In any case,
Dabholka dismissed the pattern of utilizing VIPs in ad campaigns. Dabholkar
acknowledged administrator Verghese Kurien for making a free environment
that supported the improvement of the promotions.

The Amul girl is the publicizing mascot utilized by the organization to advance
the brand. The brand has been cunningly utilizing the animation figure in its
longest-running promotion campaign. Amul Girl is accustomed to embeddings
a component of humor into its print ads.

The content is enjoyed by the individuals and has brought about better client
commitment. This builds the brand recall value for Amul. Henceforth, the Amul
girl publicizing effort is frequently depicted as extraordinary compared to other
Indian advertising ideas.
7.2 Innovation

Fig 7: Challenging Social norms with innovative campaigns

Amul has continually been changing left it alone dispatching new items,
imaginative marketing campaigns, or provoking customary cultural patterns to
come up with better ones. As referenced, Amul during the 1960s turned into
the primary brand on the planet to make skimmed milk powder from buffalo
milk.

Likewise, with its three-layered structure, Amul changed from conventional

activities to a more cost-proficient and powerful structure. For its ever-growing
advancement, Amul won the "CNN-IBN Innovating for Better Tomorrow
Award" and "World Dairy Innovation Award" in the year 2014. It was also
fimed in Shyam Benegal's National Award-winning film 'Manthan’ which was
itself a cooperative effort.

Corporate giant, Amul has recently become first in India decided to digitise the
artificial insemination services in its operational area on an experimental basis
in 25 village milk producers’ societies and was monitored and studied for one
year (2019).

7.3 Effective Supply Chain

Amul follows a three-level structure. It comprises of a dairy cooperative society
at the town level that is subsidiary with milk associations at the region level
which thus is united to a milk alliance at the state level. Milk is gathered at the
town dairy society, gotten and prepared at the area milk association, and
promoted at the state milk alliance.

The significance of this model lies in the way that Amul was the principal
organization to follow this model. It was responded everywhere on over the
nation under Operation Flood during the 1970s. The model guarantees that
there are proficiency and quickness in activities. With this, the Amul model has
helped India become the biggest milk producer on the planet.

7.4 Planning Nature

Amul advertise all of the products under one basic brand name – Amul
(Branded House Architecture Way). The prime spotlight is on marketing the
parent brand instead of individual items which encourages them acquire brand
visibility and results in lesser promoting costs.

Given the gigantic number of affiliations and substances in the inventory

network and decentralized obligation with respect to various activities, fruitful
coordination is fundamental for adequacy and cost control. GCMMF has
perceived this technique well and together achieve the ideal degree of control.

The association handles the dispersing of completed outcomes and

coordination with retailers and merchants. These consolidate watching milk
assortment contractual laborers, the stock of animal feed and various supplies,
the course of action of veterinary organizations, and informational activities.
8. Business Revenue

Atul Ltd reported revenue of 40.9B for FY 2020, an increase of 36.62%

compared to FY 2017. Net income grew 106.35% to 6.7B.

Fig 8: Revenue net income and profit margin of Amul (2017-2020)

 Fig 9: Amul's Earnings per share from 2017 to 2020

9. Growth During Lockdown

When most promoters chose to cut out their media spends, dairy brand Amul
kept doing what it excels at - entertaining purchasers with its innovative
diamonds. The brand took advantage of the lucky break and chose to twofold
its advertising spends. Strangely, interest for Amul's liquid packaged milk has
been up by 5-7% contrasted with the pre-Covid times as families appear to
have picked a confided in brand over free milk. Interest for its cheddar and
paneer items also has been at any rate 30% more regardless of conclusion of
hotels and cafes, while spread and ghee deals are up by 10-20%.

9.1 Playing around nostalgia

Specialists offer a go-ahead to the brand for proceeding to make awesome
promoting regardless of the struggles. Many gave statements that the brand
has additionally reinforced its situating in the purchaser mind space by working
up wistfulness while remaining pertinent.
Amul kept it consistent with its character with amiable fun. Never went over
the edge on tall invulnerability or Covid claims. What's more, more significantly
never halted creation, distribution, sale or advertising.
As indicated by TAM AdEx information, during the long stretches of April and
May, Amul's promotion volumes saw a three-crease (316%) expansion over the
comparing time frame a year ago. Among April and May, Amul's promotion
volumes went up by practically 21%. The brand overwhelmed with over 87% of
portion of voice in six out of the 12 classifications that it works in. 

Fig 10: Retro Ads during lockdown (5 August, 2020) on Doordarshan channel

The brand additionally re-delivered retro ads (from 90s) on Doordarshan each
Sunday close by the famous reruns of Ramayana and Mahabharat on the
channel.
N Chandramouli, CEO, TRA (Trust Research Advisory), sees that when the
lockdown was declared, Amul began ruling the TV media in publicizing, taking
the most extreme TRPs which joined with the low promoting of different
brands worked deliberately in its support.
9.2 The topicality quotient

Fig 11.1: Vibrant awareness and robust brand recall during nationwide lockdown

Amul has additionally been predictable with its effective creatives. At the point
when the legislature declared the across country lockdown for 21 days with
impact from March 25, Amul, through passed on that its trusted individuals
"stay healthy" and "not hungry". Besides, worrying on the way that leveling of
the COVID-19 bend was the need of great importance, Amul committed an
effective saying, "Yahi Curvana padega!" "Amul, flatten it in bread".
Acquiring sentimentality through adorable old promotions likewise added
flavour to the brand's allure. Themes like daughters and moms, and the family
serving Amul items with affection helped close by the incredible conveyance
and accessibility of the brand prompting hop in the both sales and brand
loyalty.
 Fig 11.2: Vibrant awareness and robust brand recall during nationwide lockdown

Fig 11.3: Vibrant awareness and robust brand recall during nationwide lockdown

Moreover, alluding to the resumption of domestic flight benefits on May 25,

Amul's promotion read: " Ab boarding paas hai ". Domestic air travel continued
on May 25 with restricted trips subsequent to staying suspended for two
months due to the Covid flare-up in the nation. Then, offering thanks towards
the medical care laborers who have been at the front of the COVID battle,
another Amul inventive read: "MBBS: Makhan Bole Bahut Shukriya".
Multiplying of advertising financial plans may have been a determined danger
however it paid off for the brand as it utilized topicality, sentimentality and
strategic execution to keep ruling over the hearts and psyches of its shoppers
even as the going got tough.
9.3 Support of ministry of home affairs and local administration

At the point when the legislature reported lockdown, Amul spoke with all the
stakeholders. They figured out how to keep the flexibly tie fully operational as
the Ministry of Home Affairs and nearby organizations helped them every way
under the sun. There were a few hiccups in the process that were managed by
Amul and organization.
One of the significant issues was with the gracefully chain accomplices. While
getting back, villagers halted them expressing conceivable Covid spread. Amul
helped in sifting through such issues. In certain villages, there were Covid
positive cases and Amul needed to prevent obtainment from those spots.
When they got a green sign from the organization, they restarted acquisition
from those towns also.

9.3 White Revolution 2.0

In India, husbandry development per annum is 14 percent when contrasted
with rural development of around 3 percent. Nonetheless, animals farming
contributed just 4.5 percent of GDP. Over the most recent ten years, Amul has
expanded its acquirement by 9% CAGR contrasted with India's acquisition rate
that is developing at 4.5 to 5 percent. The organization is developing a lot
quicker in contrast with its rivals. Amul gathers around 26 million liters of milk
each day and this developed by 15% during the lockdown.

Gujarat gives 60 percent of the milk to Amul and the remainder of the states
give the staying 40 percent. Amul is growing its range to different states and
consistently they are putting Rs 800-900 crores in new dairy plants the nation
over.
10. References

https://www.moneycontrol.com/news/business.html
https://www.opindia.com/2020/06/
https://startuptalky.com/amul-case-study/
https://www.exchange4media.com/advertising-news
https://www.msn.com/en-in
https://www.owler.com/company/amuldairy